China Metal Recycling Holdings Limited Scrap King Gets Scrapped Case Study Help


Home >> Harvard >> China Metal Recycling Holdings Limited Scrap King Gets Scrapped >>

China Metal Recycling Holdings Limited Scrap King Gets Scrapped Case Study Analysis

Background and Facts

China Metal Recycling Holdings Limited Scrap King Gets Scrapped an office supplies seller for tiny and also moderate sized services has actually just recently been associated with planning for a merger with its rival Residence Deport, which has actually influenced performance degrees in departmentswith the elderly supervisor associated with lawful problems put forth by the government Trade Commission. With the Marketing Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the near future. With obstacles in the type of a potential social change and also low worker morale, the organization wants a full reengineering effort at the advertising division.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising department of China Metal Recycling Holdings Limited Scrap King Gets Scrapped is increasing uncertainty in the working environment leading to different challenges for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing critical decisions considering that Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Profession Compensation's treatment at the same time. Given the truth that the store has a global presence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries might have the ability to affect efficiency or calculated goals. Federal Trade Compensation's antitrust suit against the merger used up useful time of the company's elderly monitoring recommending that 'political' factors can have significant effects for an international service.

Economic Factors: Economic factors such as the introduction of small businesses in the worldwide situation suggest that China Metal Recycling Holdings Limited Scrap King Gets Scrapped is thriving in a setting where there is potential development of companies. Fact that store clients are mostly looking for workplace materials for house offices recommends that the market has a climbing trend of entrepreneurs as well as home based companies.

Social factors: Social fads in the economic climate show that clients are looking for benefit along with attractive prices. Marketing research shows how the customer for China Metal Recycling Holdings Limited Scrap King Gets Scrapped does not have recognition concerning locating options which can offer a combination of ease as well as inexpensive.

Technical factors: Technology plays a vital function in China Metal Recycling Holdings Limited Scrap King Gets Scrapped's company strategy particularly as the company is piloting Innovation facilities which would provide modern technology sales and also assistance in the form of memory upgrades, peripheral installments. (Summary of PEST in appendix 2).

OB Issues and Manifestations.

Numerous underlying Business Behavior problems can be seen in China Metal Recycling Holdings Limited Scrap King Gets Scrapped's case as highlighted in this area.

Worries concerning cultural change: There is uneasiness about a social adjustment that would happen once Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with most of the employee currently revealing unhappiness over this prospective move. This predicted modification has actually created stress in the workplace which has actually been coupled with the previous stress and anxiety of preparing the firm for a potential merging with Home Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is lack of workers that can match the difficult environment of a hectic organization. Not just does this result in problem in discovering the best individuals, it puts stress and anxiety on brand-new hires as can not endure the pace and also stress that the company anticipates them to birth.

Dual Reporting Lines: Newbies find this organizational culture troublesome and also difficult to manage especially as populated line connections are implied to be weaker in general and unbiased setting and performance analysis is still done by the strong line manager. This implies that newcomers can lose clarity regarding their particular duties and purposes particularly as dotted line reporting does not keep them in direct interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had actually been guessed that the last would take Krasnow's setting came as a blow to her morale. Lewis may have been capable and also appropriate for the task however the reality that Kransnow's separation would make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Concern & Task Insecurity: Concern and instability can be recognized as 2 significant issues that Lewis would certainly be handling particularly as the merger has currently be cancelled and also 2 senior execs of the advertising and marketing department would be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders who would not just be in charge of brining about a social modification but would certainly additionally need to show herself in her new duty.

Inappropriate Monitoring Style of Leader: Lewis's administration style and its incompatibility with the marketing department's role can also be seen as an OB difficulty especially as she has actually been utilized to handling concerns in the operations department where workers are shown to concentrate on procedures and also get them. The advertising department on the other hand can be viewed as a team of people that are made use of to being nurtured by Krasnow that concentrated more on output than processes.

Interdepartmental Disagreements: Interdepartmental disputes in between three departments, advertising, merchandizing and also procedures respectively over the allocation of the advertising mix can be recognized as another OB concern. Although the advertising and marketing department does not share the very same vision as the various other 2 departments pertaining to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing as well as procedures divisions do not concur over the marketing mix allotment among one another either.

Fragmentation in Advertising Department: Disintegration between the advertising and marketing departments can be determined as one more OB problem which could require more attention. The fact that the marketing and advertising sections in the marketing division are disconnected is preventing both divisions from gaining from each various other's experience as well as experience. Integration of marketing with merchandising as well as operations would certainly come to be harder if the advertising and marketing division itself is broken down which can be another potential OB issue.

China Metal Recycling Holdings Limited Scrap King Gets Scrapped Analysis

Different concepts have been utilized to discuss the circumstances to get additional quality concerning the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that juniors are passive and also careless, have little ambition as well as withstand adjustment. The circumstance at China Metal Recycling Holdings Limited Scrap King Gets Scrapped is not entirely following Theory X, it can be seen that brand-new hires are finding this atmosphere rather difficult which might ultimately lead to a better inclination of the monitoring towards Concept X. Also while examining Lewis's administration style, theory X may have been suitable in the procedures department to some extent yet the Advertising division would certainly call for reliance on Theory Y in order to obtain the creative thinking as well as creativity from the teams.

Tuckman's Team effort Theory: As for Lewis's worry about bringing harmony between the advertising and marketing division is worried, this would originally lead to contrast as reviewed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, throughout the initial stage of team growth, people may not bond, as they are hectic finding their area in the group. By integrating the advertising and marketing division's job, there may coincide preliminary disconnect which could lead to the 2nd phase of 'storming' where the teams test each other. It is only during the 3rd phase or 'norming' when they would come with each other to share ideas prior to the team can bring about synergy in the 4th stage 'carrying out'.

Bridges' Shift Design: Based On William Bridge's concept (appendix 4), individuals are quite uneasy with modification, which is evident by the situation at China Metal Recycling Holdings Limited Scrap King Gets Scrapped The situation can be viewed as a regular program of life if is examined according to Bridge's theory where he discusses that individuals undergo three stages of shift when they experience modification. 'Ending, shedding and Releasing', The Neutral Area and 'The New Starting' (Bridges, 2004). When people exist with modification, they go into phase one and so there might be emotions like unhappiness, uncertainty, irritation, anger, fear, rejection and disorientation.The situation at the advertising and marketing department of China Metal Recycling Holdings Limited Scrap King Gets Scrapped is comparable so Lewis can obtain comfy with the suggestion that it is not amazing actions. In the second stage, there might be a demand to link the space between the new and also old society so Lewis might need to encounter this experience as soon as Krasnow leaves. There might be reduced spirits as well as low performance at this stage which should not be taken as a setback. It is throughout this stage that Lewis will certainly have to provide support to the department to ensure that they can discover a sense of direction. It can be seen how Krasnow has already made this transition less complicated by making Lewis obtain associated with the department a year before his actual departure. As per Bridges' Design, stage three will certainly produce openness to understanding, High energy as well as commitment as people will embrace the change (Bridges, 2004).
Vrio Analysis
Maslow's Requirement power structure: The OB issue related to insecurity at the work environment has been caused firstly by the modification in administration and second of all by the reality that the merger will certainly no longer be started. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has goes over the importance of 'safety requires as being a lower level requirement of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to feel safe and untouched' goes to the second degree of demands. Before an employee can be made to create psychologically, he requires to have his 'Physiological 'as well as 'Security' requires satisfied. This suggests that unless the workers are made to really feel safe and secure concerning their present employment standing in China Metal Recycling Holdings Limited Scrap King Gets Scrapped they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for China Metal Recycling Holdings Limited Scrap King Gets Scrapped Case Study

Implication of Analysis.

The OB analysis has actually checked out numerous theories to understand exactly how to handle the present circumstance handy. The following three alternatives have been suggested to assist Lewis take care of the organizational difficulties in the marketing department. Each of these options has actually been proposed for easing the change needed to bring the advertising division in line with the needs of the marketplace and also for making the social modification that would adhere to when the present leader leaves.

Combination of advertising and marketing features. Dividing Adverting and also Production features. Integration of Advertising with Workflow.

Evaluation of Alternatives.

Assimilation of Advertising And Marketing & Advertising And Marketing Functions: The in-house marketing firm of China Metal Recycling Holdings Limited Scrap King Gets Scrapped is already strength for the company in regards to conserving up on overheads associated with marketing as well as promo. Since no brand-new employment has actually been done after Bridget Cole's departure with the reporting line being directly designated to Krasnow for the advertising feature, this is a positive opportunity for incorporating the marketing and advertising features. Judith Shapiro that has earlier been talked to by Lewis during the earlier merger days has proficiency in business-to-business advertising and marketing along with company and retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both marketing and advertising functions.

The advantage of this strategy is that it will certainly incorporate the two features while reducing the need for hiring an additional resource for marketing. Lewis would certainly be heading the marketing department and also in any case her substitute would certainly be needed for the current duty that she is performing. The negative aspect of this option is that external hiring may cause animosity from inner personnel that may be considering the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Manufacturing: Offered the competitive pressures and also high top quality job required from the advertising and marketing agency, it is suggested that Lewis must allow the production device to be a different feature from the advertising system. Since many marketing agencies had these 2 functions as different systems, it makes more sense to comply with the standard.

Combination of Marketing with Procedures: Since Lewis is currently looking after the advertising and operations divisions all at once; it makes good sense to incorporate both features because she has been effectively looking after both ends. The reality that both departments currently have significant differences over allocation of resources suggests that this integration might have the ability to bring about consistency especially as Lewis would be heading both ends.However there are various disadvantages of this action specifically as it would certainly put way too much worry over Lewis's shoulders. The fact that Lewis needs to adapt her monitoring design for the marketing department suggests that these two departments would certainly be culturally diverse. Along with this, Lewis might not be able to use one type of leadership design to both divisions which can result in inefficiency in either one of both functions.


An analysis of the three options shows that assimilation of advertising and marketing as well as procedures would not be a feasible move due to the large distinctions in between the two divisions regardless of the fact that presently Lewis is taking care of both. While separation of the manufacturing function might have been a favorable action for the advertising and marketing department, the truth that it would imply positioning a 3rd function under Lewis's wing suggests this should be prevented.

Activity Plan.
Lewis will take control of the role of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

Judith Shapiro will be hired to take Lewis's place as SVP of advertising and marketing.

Production feature will continue to be component of marketing under advertising and marketing function.

Lewis will divide herself from operations.

An autonomous leadership design with employee empowerment will certainly be used in advertising division.

Open door policy as well as focus on cross department interaction will be aimed at eliminating dissonance.

Contingency strategy.

If the combination does not work out as planned, a backup strategy would comply with which would certainly divide the manufacturing feature from the advertising feature to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the marketing division without an SVP. In that case the production feature will absolutely be divided by placing it under an SVP production.